Both candidates for the 71 per cent stake in debt-laden Kremikovtzi steel mill, steel maker ArcelorMittal and Ukrainian tycoon Konstantin Zhevago, are inclined to proceed with their takeovers only once the steel mill enters and completes bankrtuptcy proceedings, the head of a labour union affiliated with the Confederation of Independent Trade Unions in Bulgaria (CITUB), Lyudmil Pavlov, was quoted by Dnevnik daily as saying on May 14.

The same day, representatives of ArcelorMittal told CITUB leadership with their plans for the mill.

A day earlier, Arcelor briefed Bulgaria’s Economy and Energy Minister Petar Dimitrov on its offer. A ministry statement read that the company owned by Lakshmi Mittal plans to issue a short-term loan for the mill, which is to cover operational expenses and salaries.

Pavlov added that Arcelor was ready to invest $150 million in operational funds, as well as give another $30 million for wages. Thereafter, plans of the giant include ending the insolvency proceedings at Kremikovtzi as well as its takeover on clearance of all claims toward creditors and owners.

Zhevago offered to use Kremikovtzi as for outsourcing orders contracted elsewhere and procure $90 million in operating funds.

Representatives from of the bondholders’ committee, who own around 50 per cent of the mill’s 325 million euro bonds, said that the insolvency proceedings represented just once scenario for the ownership change. The committee is collectively the largest creditor of the mill and they could also vie for a majority stake in Finnmetals Holding, the company that owns 71 per cent in Kremikovtzi, they added.

Reportedly, ArcelorMittal is ready to pay between $400-700 million for the mill and about $500-650 million in capital expenditures in the next five years.